Investments, export activity, corporate tax reductions, and privatizations are set to stimulate growth for the Greek economy by 2.2-2.5 percent this year from 2.1 percent in 2019, according a quarterly review released on Wednesday, by the Foundation of Economic and Industrial Research (IOBE).
According to IOBE analysts, the Greek economy is finally showing signs of recovery after nearly a decade of economic woes. The Greek think tank expects Greek consumer activity to grow by 1.4 percent and exports by 5.5-6 percent.
The IOBE forecast remains in line with its previous estimate but below the government’s 2.8 percent projection for 2020.
Besides announcing tax cuts, the Greek government has also pledged to move ahead with privatizations and to implement investment-friendly policies to stimulate growth and reduce unemployment, which has dropped to 16.6 percent but still remains the highest in the eurozone.
Tourism was among the sectors driving growth and creating jobs in 2019, expected to continue the positive performance into 2020, according to IOBE. Indicatively, the tourism sector was among the sectors recording an 18.1 percent increase in employment in the third quarter of 2019.
According to IOBE General Director Nikos Vettas, Greece should now implement targeted policies focused on attracting investors and strengthening entrepreneurship as well as increase salaries to achieve a sustainable growth momentum in the medium term.